2.5 p QUESTION 22 You are given the following information. Expected annual inflation in U.S. is 5% while the expected inflation in Britain is 8%. One-year interest rates in U.S. and Britain are 2% and 5%, respectively. The spot rate of the British pound is $1.40. Assume PPP holds and that you have $2,000,000 to invest. If you invest in Britain, what will be the approximate yield on your investment? o 4% o 6% 3.96 o 2%